A discussion case study in Business & Government Relations course. Blood Diamond - the brutal story behind the gorgeous diamonds.

1. Class 4 – Group 3
Conflict Diamonds & Kimberley Process
Discussion Case

2. Blood
Diamonds
&
the
Kimberley
Process
Definitions
Conclusion & Solutions
Assessment of the
Kimberley Process
Summary for the Case
Discussion Questions

3. Definitions
Conflict Diamonds
(aka, Blood Diamonds)

4.  The Kimberley Process (KP): an international
certification scheme that regulates trade in rough
diamonds.
 Core mission of KP:
Prevent the flow of conflict diamonds
Definitions

5.  Conflict diamonds captured the world's attention during the
extremely brutal conflict in Sierra Leone in the late 1990s.
 Rebel groups were seizing control of diamond mining regions
and exchange diamonds for money and weapons.
 Similar stories in Angola, Liberia, the Democratic Republic of
Congo and other African nations
 By some estimated, 6 million civilians were forced from their
home and 3.7 million died in these African conflicts.
 In 1998, Global Witness, a British NGO, took the lead in
exposing the problem to the public
Discussion Case

7.  In 2000, De Beers Corp. – the world’s leading seller of
diamonds readily acknowledged that conflict diamonds were
a problem.
Discussion Case
 Established a new organization
– World Diamond Council, to
bring together diamond
companies, government
representatives & other interested
parties.

8.  In 2003, the diamond industry’s response
came in the form of a new diamond
certification scheme called the Kimberley
Process.
 By 2009, 74 diamond-producing countries
that participate in the Kimberley Process
agree to trade rough diamonds only with
other countries in the organization.
Discussion Case

10.  Q1: What are conflict diamonds?
What groups benefited from the trade in conflict diamonds?
What groups were hurt by it?
 Conflict diamonds are gemstones that are mined or stolen by
rebels fighting internationally recognized government & that is sold
to fund military action against that government.
 Groups benefited: Combatants in Africa civil wars,
 Groups were hurt:
• Local communities in civil war areas;
• Countries with legitimate diamond industries
(Botswana, South Africa, Namibia, Canada & Australia);
• Countries with large retail operations
• Diamond Corporations – the retailer and manufacturer of diamonds
Questions & Answers

11.  Q2: What three sectors were concerned with the problem of
conflict diamonds? What was the interest of each, & in what
ways did their interests converge?
 Three sectors were concerned: the government, the diamond
companies, & Non-governmental organizations (NGOs)
 Each sector has its own benefits:
• The governments want to keep the power in their nations as well as
the control of the mines to finance their operations against the
rebels in civil wars.
• The diamond companies and the diamond-producing nations only
concern in remaining & increasing the sales of diamonds
• NGOs are concerned with the main purposes - Eliminating
Conflict Diamonds & Resolving the Humanitarian Crisis.
Questions & Answers

12.  Q3: Do you believe that any of these sectors could have
addressed the problem of conflict diamonds unilaterally?
Why or why not?
 It is difficult to deal with the problem unilaterally because it is a
really complicated problem with the different concerns of these
sectors. Moreover, diamond is the most precious mineral that
brings huge profit for the businesses and diamond-producing
countries. To hold the control of valuable mineral resources as
well as create the most valuable sales, the civil wars in many
African countries have devastated these for a long time and
created serious humanitarian crisis.
Questions & Answers

13.  Q4: What are the possible weaknesses in the Kimberley
Process? What role do you think the three sectors will have
in addressing these weaknesses?
 The possible weaknesses of KP:
• KP only cared about the rough diamonds and largely ignored the
diamond cutting & polishing industry, providing an entry point for
conflict gems.
• Smuggled diamonds from conflict zones in Kimberley Process
member countries
 The three sectors play equally the key role in addressing these
weaknesses. If there is no cooperation among them to take
decisive action together, the problems could not be solved.
Questions & Answers

14.  Significant Achievements:
 Pioneered a tripartite approach to solve
international problems
• Sierra Leone, Angola & the Democratic Republic of the
Congo achieved the peace from rebels in civil wars
 Helped some countries in increasing their
official diamond revenues.
• Examples: Botswana, Namibia, Tanzania & South Africa
Assessment

16.  Kimberley Process Criticism:
o The definition of “conflict diamonds” used by
KP only covers rough diamonds funding rebel
armies in areas of conflict.
This is not a complete & universal definition
Assessment

18.  Kimberley Process Criticism:
o Diamonds tainted by human rights abuse are
widely sold and certified as "conflict free.”
o KP does not take any action when hundreds of
people including children have been killed,
many more have been beaten, raped and forced
to mine for the army and police.
Assessment

20.  Kimberley Process Failure:
o Fails to deal effectively with
problem case, such as Zimbabwe,
Côte d’ Ivories (Ivory Coast) &
Venezuela
o Still supports for violence & human
rights abuse
o Allow conflict diamonds into the
international market
Assessment

26.  Reason for the Kimberley Process Failure:
 Lack of controls
 No requirement for traceability to their mine of origin,
governments often give Kimberley Process certification
to diamonds with unknown histories –
 making it easy to smuggle banned diamonds or evade taxes for
non-declared diamonds or other illicit gems.
 Failed to regulate the diamond supply chain.
 Most warrantees for clean diamonds do not provide any
meaningful assurances.
Assessment

27.  Same definition, Same statistics for over a decade?
 No refusal for happening problems anymore
 Need to reform & take a real action for blood
diamonds around the world
Conclusion

28.  Making the real change besides only giving the statement
of expansion of its mission – “systematic acts of violence
against communities that are directly associated with
diamonds”, even for non-civil war areas (WDC, 2013)
 Building international standards on minerals supply chain
controls,
E.g.: independent third party audits & regular public disclosure
 creating independent & reliable verification of the
diamond warranty system
 Putting the standards into laws
Solutions for KP to reform

29. Make diamonds legally & ethically
Next Chapter: An ending video by
Brilliant Earth

30.  Armstrong, P. (2011, December 5). What are ‘conflict diamonds?’. CNN.
Retrieved October 25, 2014, from
http://edition.cnn.com/2011/12/05/world/africa/conflict-diamonds-explainer/
 Effort to Control. Brilliant Earth. Retrieved October 26, 2014, from
http://www.brilliantearth.com/kimberley-process/
 Leggett, T. (2011, December 5). Global Witness leave Kimberley Process
diamond scheme. The BBC. Retrieved October 25, 2014, from
http://www.bbc.co.uk/news/business-16027011
 World Diamond Council. (2013, November 19). Kimberley Process depended
appreciation of diamonds’ positive role in Africa economic development,
WDC president tells KP plenary. World Diamond Council. Retrieved October
26, 2014, from
https://www.worlddiamondcouncil.org/index.php/news/293-kimberley-
process-deepened-appreciation-of-diamonds-positive-role-in-africa-s-
economic-development-wdc-president-tells-kp-plenary
Reference